Financially healthy Americans fell to just 36% in September, according to J.D. Power’s October 2026 Financial Health Report, as nearly half of consumers said everyday costs had become less affordable. The financially healthy share dropped as the share classified as financially unhealthy — including those considered vulnerable, overextended or stressed — rose one percentage point to 64%, reversing three months of improvement.
The report, published in Troy, Michigan, found that 48% of consumers said their monthly expenses were less affordable than six months earlier, an increase of five percentage points and the highest reading since April. It is a stark snapshot of household pressure, even before the latest mortgage and shop-price data. Consumers want personal financial advice, J.D. Power found, but they remain highly sensitive to bank rates and fees.
How spending changed in September
Overall, 77% of consumers said they changed their day-to-day spending in September, including 58% of those classified as financially healthy. Among all consumers surveyed, 44% cut back on dining out and entertainment, 32% switched to less expensive brands or stores, 29% delayed nonessential or discretionary purchases, and 28% reduced grocery spending or skipped meals, up from 25% in August.
The affordability squeeze was sharpest among the most stressed groups. J.D. Power reported that 60% of financially stressed consumers, 35% of overextended consumers and 51% of consumers aged 40 and older reported worsening affordability. That pattern points to a K-shaped experience: households with a cushion are adjusting, while households without one are cutting essentials.
Why fees and rates matter so much now
High sensitivity to rates and fees makes sense when budgets are already tight. A bank fee, a higher credit-card rate or a larger mortgage payment lands differently when grocery spending is already being trimmed. J.D. Power’s finding that consumers want advice but resist fees suggests banks and advisers need to show value upfront — a free, plain-English check of subscriptions, rates and charges — rather than selling a product first.
For households, the report is a prompt to do that check themselves. List every recurring charge, call the provider about any rate rise, and ask whether a lower-cost account or card exists. A single phone call that removes a fee or lowers a rate can matter more than a week of small cutbacks.
A practical response, not panic
Falling financial health is a warning, not a verdict. The households coping best in the survey still changed their spending — they just changed it early, before a shortfall forced the issue. Review the last month’s bank statement line by line, separate needs from wants honestly, and protect the essentials first: housing, food, transport to work and minimum debt payments. If minimum payments are at risk, contact a nonprofit credit counsellor early, while options remain open, rather than waiting until arrears build.
